INTERNATIONAL DEVELOPMENT

Essential Medicines

Mr. Gareth Thomas: I have placed in the Libraries of both Houses copies of the new UK Government paper "Increasing Access to Essential Medicines in the Developing World: UK Government Policy and Plans". This paper is published by the Department for International Development (DFID) on behalf of seven Government Departments—the Department of Health, Department of Trade and Industry, the Foreign and Commonwealth Office, HM Treasury, the Inland Revenue, the Patent Office and DFID. These Departments worked together to deliver the paper.
	The lack of access to essential medicines in developing countries is one of the most pressing global health issues. Tackling this could save millions of lives every year—the World Health Organisation (WHO) estimates that as many as 4 million lives could be saved each year in Africa and South-East Asia with improved access to medicines. However, while some encouraging progress has been made in recent years, there remains a limited supply of affordable medicines and inadequate health systems to deliver them in many developing countries, and a continuing shortage of new products to meet developing country health needs.
	We have strengthened collaboration and policy coherence across Government to address this issue and have jointly agreed next steps. These are outlined in the paper, and cover four areas:
	Support to developing countries through the UK development assistance programme, with a focus on increasing poor people's access to health services;
	trade policy, focusing on supporting developing countries in understanding and making use of the flexibilities within World Trade Organisation (WTO) rules governing intellectual property;
	engagement with the business community, focusing on work with the pharmaceutical industry, to address the longer-term supply of affordable medicines to developing countries;
	efforts—in the UK and Internationally—to stimulate increased research and development into new medicines and other healthcare products relevant to developing country health needs.
	We will, for example:
	work with UK research institutions to establish a UK Funders Forum for health research relevant to developing country needs;
	monitor and evaluate the UK Vaccines Research Relief, a tax credit for the research and development of products for HIV, TB and malaria;
	work with the pharmaceutical industry to develop a "best practice" framework, to support and encourage companies in their work to increase access to medicines;
	implement any necessary legislation within the UK (and EU) to facilitate export to developing countries under compulsory licence, if requested, in line with the WTO General Council's Decision of 30 August 2003.
	Implementation of the paper will require continued collaboration across Government. It will also require us to work in partnership with developing country Governments, international agencies and donors, civil society, the pharmaceutical and biotechnology industries, the broader private sector and the research community.

TREASURY

Financial Services Authority

Ruth Kelly: The Annual Report 2003–04 of the Financial Services Authority (FSA) has today been laid before Parliament.
	Copies are available in the Libraries of both Houses. The report forms a key part of the accountability mechanism for the Financial Services Authority under the Financial Services and Markets Act 2000 (FSMA), and assesses the performance of the Financial Services Authority over the past 12 months against its statutory objectives.

DEFENCE

Government Contracts

Adam Ingram: I am pleased to announce that the Government have accepted the recommendations in the Review Board for Government Contracts' 2003 general review of the profit formula for non-competitive Government contracts.
	This package of measures, to be implemented from 1 July 2004, represents a significant modernising of the current profit formula arrangements, and is consistent with the Department's defence industrial policy.
	The measures that will be introduced include an alternative profit calculation methodology, a recognition that there are varying degrees of risk associated with defence non-competitive contracts, arrangements for addressing "profit on profit", a formula for sharing excess profits and unconscionable losses, and incentives to encourage timely submission of post-costing certificates.
	A copy of the report has been placed in the Libraries of both Houses.

Shatt Al Arab Incident

Geoff Hoon: On 21 June a Royal Navy training team consisting of eight personnel and three small boats was detained by the Iranian authorities on the Shatt al Arab waterway near the southern extremity of the Al Faw Peninsula. The team was conducting a routine boat movement from Umm Qasr to Basra. The initial assessment, reflected in statements by a British Army spokesman in Basra and the British Ambassador in Tehran, was that these service personnel could have strayed into Iranian waters by mistake.
	Our first priority was for the safe return of the personnel. Discussions with the Iranian authorities secured the release of the eight on 25 June. They were immediately returned to the multinational division south east where they underwent a medical assessment and debriefing to establish their perspective of the incident. Since then, two of the team have returned home because their tour of duty has come to an end; another returned home today for medical reasons associated with the incident. The remainder of the team continues to work in Iraq.
	We are continuing with negotiations for the return of the boats and equipment. The deadline set for their return passed yesterday. The equipment consists of personal weapons, ammunition, radios and navigation equipment including echo sounders (to measure the depth of the water), global positioning systems (to identify exact position) and up-to-date maritime charts.
	I would like to reassure the House that British personnel are trained to observe the normal rules of maritime navigation and are issued with modern charts and equipment. This should be sufficient to prevent inadvertent digressions across the border and we are not aware of any previous allegations that the border has been violated.
	In recent more detailed debriefing, the crews have said that they were operating inside the Iraqi border and were forcibly escorted into Iranian territorial waters. Our assessment continues, and will be greatly assisted by the retrieval of navigational information in the global positioning system equipment carried by the crews. We are very concerned about the blindfolding of the men and have made representations about this to the Government of Iran. We have also made it clear that we do not expect a recurrence of this type of incident.

Disposal Services Agency

Adam Ingram: The agency was originally launched as the Disposal Sales Agency in October 1994 and was re-launched in November 2000, as the Disposal Services Agency. DSA provides a total disposal solution by acting as a broker and adding value through expert advice across the public sector. The agency operates very much in line with the Government's aim of more joined-up delivery. The chief executive of the agency has been set the following key targets for the financial year 2004–2005:
	To achieve a disposal sales gross cash receipt of £20 million from sales of surplus Government owned equipment and stores. This figure reflects the planned surplus equipment disposal programme.
	To meet the key performance indicators agreed in the customer supplier agreement (CSA) with the Defence Logistics Organisation (DLO).
	To ensure that the agency is at the standard or above the standard of the public sector benchmarking report for overall customer satisfaction.
	To secure £365,000 sales per person employed for commercial sales activities.
	To ensure that the e-trade exchange is in operation in 2004–05 and that 30 per cent. of eligible agency contractors use it.

DEPUTY PRIME MINISTER

Home Loss Payments

Keith Hill: Following the annual review, my right hon. Friend the Deputy Prime Minister will today lay regulations to update the home loss payment thresholds in section 30 of the Land Compensation Act 1973 (as amended). Home loss payments are paid at a rate of 10 per cent. of the market value to owner-occupiers who are displaced from their homes as a result of compulsory purchase or certain housing orders. These are subject to maximum and minimum payments. Tenants receive a flat rate equal to the minimum payment to owner-occupiers.
	With effect from 1 September 2004, the maximum payment to owner-occupiers displaced from their home will be increased from £31,000 to £34,000 and the minimum payment will be increased from £3,100 to £3,400. The flat-rate will be increased from £3,100 to £3,400.
	The period of two months between laying the regulations and commencement will give acquiring authorities reasonable notice to revise their budgets for compensation. This is similar to the notice period that was given for previous amendments to home loss payments thresholds.

TRADE AND INDUSTRY

East Midlands Development Agency

Patricia Hewitt: I have decided to appoint Bryan Jackson as the new chair of the board of the East Midlands Development Agency (EMDA).
	The appointment will begin on 14 December 2004 and is for three years, expiring on 13 December 2007. I have placed further details of this appointment in the Library of both Houses. The appointment has been made in accordance with the code of practice of the Commissioner for Public Appointments.

FOREIGN AND COMMONWEALTH AFFAIRS

Independent Monitor for Entry Clearance

Chris Mullin: I have arranged for copies of the first annual report by Fiona Lindsley, the independent monitor for entry clearance refusals without the right of appeal, to be placed in the Library of the House today.
	The report covers a review of decisions taken in the calendar year 2002. It should have been submitted by 30 November 2003, but was delayed due to the late appointment of the independent monitor. I thank Ms Lindsley for her hard work in completing her first report as independent monitor for entry clearance matters.
	I welcome Ms Lindsley's report. It contains a number of interesting recommendations, a number of which have already been addressed.
	Ms Lindsley has started working on her second report, for the calendar year 2003, which should be submitted to my right hon. Friend the Foreign Secretary by 30 November 2004.

WORK AND PENSIONS

Underfunded Pension Schemes (Insolvency)

Malcolm Wicks: On 14 May, the Government announced a financial assistance scheme for those who have lost out because they worked for companies that have gone insolvent and wound up their pension scheme underfunded. While the Government have no liability in respect of these schemes, they recognise that in some cases wind-ups have imposed severe hardship and the assistance scheme will offer significant help to those worst affected.
	I subsequently said, during report stage of the Pensions Bill on 19 May, that by the end of June the Government would publish the results of their inquiries to establish the numbers affected and the scale of their losses. I have accordingly today placed a report in the Library.
	The nature and level of any assistance given to pension scheme members under the financial assistance scheme will be subject to a number of factors including the design of the scheme and whether the significant Government commitment of funding from the taxpayer is supported by funding from industry. As I explained to the House on 19 May, we shall be designing the scheme in consultation with interested parties over the summer and autumn of 2004, with a view to having the legislative framework in place by the spring of 2005 and making payments as soon as practicable after that.